The unit, which made its third investment this week by backing Renaissance Learning at a $1bn valuation, was set up last year but has only now been revealed by Google.
Google already has a hard-working early-stage arm called Google Ventures, but has launched the new unit to make later-stage investments.
A statement from the company said, “Ever since our founders began working out of a garage in Menlo Park, we’ve thought about what it takes for entrepreneurs to build the companies they dream of.
“Sometimes this means bringing great start-ups to Google – but other times, it means we go to them.
“Today, we’re launching Google Capital, a new growth equity fund backed by Google and led by partners David Lawee, Scott Tierney and Gene Frantz.
“Like our colleagues at Google Ventures, our goal is to invest in the most promising companies of tomorrow, with one important difference.
“While Google Ventures focuses mainly on early-stage investments, we’ll be looking to invest in companies solely as they hit their growth phase.
“That means finding companies that have already built a solid foundation and are really ready to expand their business in big ways.
“We’ll look across a range of industries for companies with new technologies and proven track records in their fields.”
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